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This week a partnership between Amazon and Wells Fargo was announced. Members of Amazon Prime Student will receive a 0.5 percent interest rate discount on student loans taken out through Wells Fargo’s Education Financial Services.

1. Why are financial advisors wary of the deal?
2. How much did the Washington Post calculate a student would save on a $10,000 loan over 10 years, including the additional discount offered with automatic monthly loan repayment? Explain whether this is really a deal.
3. What is the goal of this partnership?
4. What role does each partner have in this venture?


Lindsay, R. (2016). Amazon offers Prime members discounted student loans. Is that fair? The Christian Science Monitor, July 22 (Retrievable online at